A rift between lenders and the government-sponsored enterprises over mortgage insurance widened this week with Freddie Mac's announcement that it will shortly offer a reduced-cost insurance option.

The plan came under fire from the Mortgage Bankers Association, which had criticized a similar program announced in January by Fannie Mae.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.